Core Viewpoint - The company plans to establish a holding subsidiary, Tongshan Shenwu Low Carbon Material Technology Co., Ltd., to advance a 50,000-ton recycled copper circular economy project, enhancing its industry chain and capacity layout, thereby improving profitability and market competitiveness [2][9]. Investment Overview - The total investment for the project is estimated at 120 million RMB, with Shenwu Energy contributing approximately 61.2 million RMB, representing a 51% stake [3][9]. - The subsidiary will be co-established with Tongshan Tongtai Supply Chain Co., Ltd. and Hubei Zhongyi Copper Industry Co., Ltd., with respective contributions of 43.2 million RMB and 15.6 million RMB [3][5]. Financial Structure - The registered capital of the new subsidiary is set at 10 million RMB, with Shenwu Energy contributing 36% in cash and physical assets [2][3]. - Funding sources for the investment include cash and bank loans, with the company having secured bank credit [3][5]. Project Details - The project involves leasing and renovating a 30,000 square meter factory for production [5][9]. - The project company will operate as a limited liability company, with shareholders responsible for their subscribed capital [6][9]. Market and Industry Context - The recycled copper industry faces challenges such as low and volatile profit margins, influenced by global economic conditions and commodity cycles [9][10]. - The company acknowledges potential risks related to copper price fluctuations and market demand, which could significantly impact project returns [10]. Governance and Management - The governance structure includes a board of directors with representatives from each shareholder, and a supervisory board member appointed by one of the partners [7][8]. - Financial management will adhere to the accounting standards applicable to the company, with independent audits conducted by third-party firms [8]. Long-term Impact - The investment is not expected to adversely affect the company's financial status or operations in 2025, but its long-term impact will depend on the project's execution and market conditions [9]. - The establishment of the new subsidiary is seen as a strategic move to leverage resources and enhance sustainable development [9].

1. Report Industry Investment Rating - Not provided in the given content 2. Core Viewpoint of the Report - The expansion of the US fiscal deficit and the Fed's potential interest rate cuts, along with disruptions in production or transportation at multiple overseas copper smelters, are countered by the easing of Sino - US tariffs and the traditional off - season for consumption. With the global electrolytic copper inventory starting to accumulate, the upward space for copper prices may be limited. It is recommended that investors hold their previous long positions cautiously and pay attention to the support and resistance levels of Shanghai copper, London copper, and US copper [5]. 3. Summary by Relevant Content 3.1 Market Data - **Shanghai Copper Futures Active Contract**: On July 3, 2025, the closing price was 80,560, up 20 from the previous day; the trading volume was 83,386 lots, down 18,572; the open interest was 224,672 lots, up 1,550; the inventory was 24,103 tons, down 994 [2]. - **Shanghai Copper Basis and Spot Premium/Discount**: The average price of SMM 1 electrolytic copper was 80,980, down 10; the Shanghai copper basis was 420, down 30; the spot premium/discount in different regions showed various changes, such as a 20 - point decrease in Guangzhou and East China [2]. - **London Copper**: The closing price of LME 3 - month copper futures (electronic trading) was 9,951.5, down 58.5; the total inventory of registered and cancelled warrants decreased by 94,325; the LME copper futures 0 - 3 - month contract spread was 87.61, down 8.59 [2]. - **COMEX Copper**: The closing price of the active copper futures contract was 5.196, up 0.08; the total inventory was 213,171, up 1,962 [2]. 3.2 Important News - **Macro - news**: The US Senate - version "Six - Pretty" bill was passed, planning to raise the debt ceiling to $5 trillion, with potential fiscal deficit expansion. The Trump administration's tariff policy affects consumption, and the US ADP employment number in a certain month was - 33,000, lower than expected and the previous value, reducing the probability of the Fed not cutting interest rates in July, with expected rate - cut months being September, October, or December [3]. - **Industry - specific News**: Some copper mines and smelters faced disruptions. For example, Las Bambas and Constancia had copper concentrate transportation interruptions; several smelters, including Pasar in the Philippines, Rosh Pinah in Namibia, and Altonorte in Chile, had production suspensions. Meanwhile, some new projects were progressing, such as the Jiangxi Copper Hongyuan's projects and other copper - related projects in China [4]. 3.3 Downstream Market - Some copper rod enterprises plan to cut production to reduce inventory in July. The capacity utilization rates of various copper products, including refined copper rods, copper wire and cable, copper foil, and copper pipes, are expected to decline in July, except for the potentially rising capacity utilization rate of electrolytic copper rod production [5]. 3.4 Trading Strategy - Due to the factors mentioned above, it is recommended that investors hold their previous long positions cautiously and pay attention to the support and resistance levels of Shanghai copper (76,000 - 78,000 and 81,000 - 83,000), London copper (9,300 - 9,600 and 9,900 - 10,200), and US copper (4.6 - 4.9 and 5.2 - 5.5) [5].

Summary of Copper and Recycled Copper Market Analysis Industry Overview - The analysis focuses on the copper and recycled copper market, highlighting supply and demand dynamics, production trends, and pricing factors for 2025 [1][3][40]. Key Points Supply and Demand Dynamics - Copper mine supply growth is projected to be only 1%-2% in 2025, while domestic smelters are expected to add over 1 million tons of new production capacity, leading to a tight supply situation amid increasing demand [1][3]. - In the first four months of 2025, electrolytic copper production increased by approximately 400,000 tons year-on-year, primarily due to the significant contribution of recycled copper anode plates [1][6]. - Domestic recycled copper supply increased by 87,000 tons year-on-year in the first four months of 2025, driven by rising copper prices and policies promoting the replacement of old equipment [1][11]. Production and Profitability - The average processing profit for copper processing and recycled copper industries remains high, encouraging companies to maximize production capacity, particularly for anode plates, which are expected to reach 1.85 to 1.90 million tons in 2024 [1][8][9]. - Current smelting operations are facing challenges, with zero single transactions generally resulting in losses of around 1,500 yuan, reflecting the tough market environment [1][7]. - The processing profit for recycled copper anode plates is notably high, with profits reaching 500 to 600 yuan per ton, driving increased production [5][8]. Regional Development - Key regions for the development of the recycled copper industry include Jiangxi, Anhui, Hubei, and Sichuan, benefiting from tax incentives and attracting significant investment [1][10]. Market Influences - The growth in electric grid investment is expected to boost demand for wires and cables, with a positive outlook for the real estate market in 2025, indicating a narrowing year-on-year decline [2][17]. - The impact of U.S.-China trade tensions has led to fluctuations in the supply of recycled metals, with April 2025 seeing a decrease in supply due to tariffs [14][24]. Price Trends - Copper prices are expected to remain optimistic in 2025, with a support level likely above 70,000 yuan, despite potential volatility due to macroeconomic factors [25][41]. - The price sensitivity of downstream demand is significant, with order volumes increasing when prices drop to around 75,000 yuan [30][31]. Future Outlook - The overall outlook for the recycled copper supply is positive, with expectations of an increase in both imported and domestic supply, driven by policy changes and the aging of equipment [22][35]. - The anticipated stability in the waste copper market suggests that while the second quarter may not show significant growth, the overall demand for copper is expected to rise in the latter half of 2025 [24][40]. Additional Insights - The relationship between electrolytic copper production and recycled copper anode plates is crucial, as the latter helps to fill the production gap caused by slow growth in copper mines [28]. - The competition for waste copper between smelting and processing plants is influenced by market prices, affecting production decisions and supply flows [29]. This comprehensive analysis provides a detailed overview of the current state and future prospects of the copper and recycled copper markets, highlighting key trends, challenges, and opportunities for stakeholders in the industry.

Group 1 - The Peruvian government has implemented a curfew in the Pataz region due to rising crime, suspending all mining activities for 30 days, which may raise concerns about the stability of copper supply from Peru, the world's third-largest copper producer [1] - Peru's copper production for 2024 is projected at 2.736 million tons, accounting for approximately 10% of global output, indicating the significance of any disruptions in this region [1] - The Pataz region primarily produces gold and silver, with limited copper production, suggesting that the impact on precious metal prices may be relatively minor despite the mining suspension [1] Group 2 - The overall weakness in non-ferrous metals is attributed to two main factors: the impact of the trade war initiated by the Trump administration on the US economy and the significant fluctuations in demand expectations due to tariffs [2] - Domestic copper consumption in China exceeded expectations with an 8% growth in apparent consumption in the first quarter, but a seasonal decline is anticipated post-May, which may weaken the demand-side support for copper prices [2] - Analysts remain cautiously optimistic about copper prices in the medium term, despite potential high-level corrections, as the fundamentals appear strong, and the market is currently experiencing low inventory levels [3]